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Hotels getting back to basics

Hotel
Luxury hotels are focusing on filling their rooms, rather than charging for extras  


By CNN's Becky Anderson

BERLIN, Germany (CNN) -- These are troubled times for the hotel industry.

Amid lower corporate travel budgets and lingering fears about flying, some luxury hotels have suffered heavy declines in revenues following September 11.

As industry leaders gather in Berlin this week for the Travel and Tourism World Trade Fair, their biggest fear is of another global crisis.

But their hope is for stability this year -- and a return to growth next year.

And they're getting back to basics.

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How have hotels dealt with the post-September 11 downturn in business? CNN's Becky Anderson reports (March 19)

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Big-city hotels, which rely heavily on business travellers, can't charge for spa facilities because most of their guests expect them.

Most large hotels have bars, but alcohol sales aren't core to the bottom line.

And hotels used to make an awful lot of money when guests dialled the phone, but not anymore -- these days travellers are using their mobiles.

"Trading has been tough since 9/11, and it's likely to remain that way for the foreseeable future," says hotel industry consultant Richard Garland.

"Really the bottom line is about getting bodies into beds, because that's where hotels really make their money."

The hotel industry is among the world's biggest and was probably the worst affected by the events of September 11. Experts say more than 10 million jobs have been lost worldwide.

So in these uncertain times, how is the industry changing?

"We believe that we're seeing, certainly in the U.S., a desire to stay closer to home and be closer to family. We're definitely seeing a lot more families travelling together," says Ritz Carlton COO Simon Cooper.

"That was a trend before (September 11), and it's really given it a shove. It's grandparents and grandchildren, it's families, and so we're ... creating packages and activities in all our hotels for all different ages."



 
 
 
 







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